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Kerry Logistics Network Ltd. (HK:0636)
:0636

Kerry Logistics Network (0636) AI Stock Analysis

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HK

Kerry Logistics Network

(OTC:0636)

Rating:58Neutral
Price Target:
The overall stock score for Kerry Logistics Network is 58, driven by a moderate financial performance with improved profitability but cash flow concerns. The technical analysis reflects a bearish trend, impacting the score negatively. However, the stock's low valuation and reasonable dividend yield offer potential value for investors, balancing some of the risks.

Kerry Logistics Network (0636) vs. iShares MSCI Hong Kong ETF (EWH)

Kerry Logistics Network Business Overview & Revenue Model

Company DescriptionKerry Logistics Network Limited (0636) is a leading logistics service provider based in Hong Kong. The company operates a comprehensive network across six continents, offering a wide range of services including integrated logistics, international freight forwarding, express services, and supply chain solutions. Kerry Logistics is known for its extensive reach in Asia and its ability to provide customized logistics solutions to meet the diverse needs of its customers across various industries.
How the Company Makes MoneyKerry Logistics Network makes money primarily through its diversified logistics services portfolio. The company's revenue streams include integrated logistics services, which encompass warehousing, distribution, and supply chain management solutions. Another significant revenue stream is international freight forwarding, where the company facilitates the transportation of goods via air, sea, and land. Additionally, Kerry Logistics generates income from its express services, providing time-sensitive delivery solutions. The company's strategic partnerships and extensive global network enable it to capture a wide range of customers, from multinational corporations to small and medium-sized enterprises, enhancing its revenue-generating capabilities. Kerry Logistics' ability to adapt to market demands and leverage its regional expertise contributes significantly to its earnings.

Kerry Logistics Network Financial Statement Overview

Summary
Kerry Logistics Network shows a positive trend in income metrics with improved margins and revenue growth in 2024. The balance sheet reflects moderate leverage and an improved return on equity, though the decline in equity presents a risk. Cash flow analysis is hindered by unavailable data for 2024, indicating potential liquidity concerns. Overall, the company demonstrates recovery in profitability but faces challenges in cash flow management.
Income Statement
70
Positive
The revenue growth from 2023 to 2024 was significant at 22.88%, but it followed a sharp decline from 2022. Gross profit margin for 2024 was 9.69%, indicating moderate efficiency. Net profit margin improved to 2.65% in 2024, showing better profitability compared to 2023. EBIT and EBITDA margins improved to 4.83% and 6.26% respectively, suggesting an enhancement in operational efficiency.
Balance Sheet
60
Neutral
The debt-to-equity ratio in 2024 was 0.69, indicating moderate leverage. Equity ratio was 39.24%, reflecting a stable capital structure. ROE improved to 9.20% in 2024, highlighting better returns for shareholders. However, the decreasing trend in stockholders' equity indicates potential risk in long-term financial health.
Cash Flow
40
Negative
Free cash flow was not available for 2024, making growth assessment difficult. In 2023, the company had a free cash flow of 2.13 billion. The absence of operating cash flow in 2024 raises concerns about liquidity and cash management. Free cash flow to net income ratio in 2023 was 2.65, suggesting strong cash generation relative to net income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
58.27B47.41B86.65B78.95B49.62B
Gross Profit
5.65B4.90B8.35B9.00B4.63B
EBIT
2.81B2.29B4.72B5.38B2.00B
EBITDA
3.65B4.01B7.77B7.67B4.04B
Net Income Common Stockholders
1.54B804.03M3.58B5.75B2.90B
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.58B6.52B9.29B9.91B8.95B
Total Assets
42.70B42.12B45.33B48.16B56.90B
Total Debt
11.49B10.86B11.76B10.10B13.66B
Net Debt
4.91B4.34B2.84B1.01B5.17B
Total Liabilities
23.62B22.01B24.08B23.33B24.42B
Stockholders Equity
16.76B17.59B18.43B21.04B27.48B
Cash FlowFree Cash Flow
0.002.13B3.94B4.19B3.26B
Operating Cash Flow
3.06B2.95B5.56B5.93B4.56B
Investing Cash Flow
-777.19M-3.70B-4.25B10.58B-329.22M
Financing Cash Flow
-2.13B-1.92B-645.32M-15.65B-1.74B

Kerry Logistics Network Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.63
Price Trends
50DMA
6.86
Positive
100DMA
6.79
Positive
200DMA
6.94
Positive
Market Momentum
MACD
0.25
Positive
RSI
56.90
Neutral
STOCH
23.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0636, the sentiment is Positive. The current price of 7.63 is above the 20-day moving average (MA) of 7.59, above the 50-day MA of 6.86, and above the 200-day MA of 6.94, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0636.

Kerry Logistics Network Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$143.81B11.2113.40%10.09%-1.07%16.00%
70
Outperform
$17.83B6.785.64%5.99%5.93%-3.64%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
58
Neutral
$13.94B9.028.04%4.79%22.92%27.65%
56
Neutral
$6.86B-1.35%-11.86%83.13%
53
Neutral
$61.79B69.340.47%5.90%-2.96%-81.31%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0636
Kerry Logistics Network
7.63
-0.59
-7.21%
HK:1199
COSCO SHIPPING Ports
4.89
-0.10
-2.04%
HK:2338
Weichai Power Co
16.38
2.75
20.16%
HK:1997
Wharf Real Estate Investment Co
20.65
0.31
1.55%
HK:2038
FIH Mobile
9.62
1.12
13.18%

Kerry Logistics Network Corporate Events

Kerry Logistics Network Announces Special General Meeting for Framework Agreement Revisions
May 2, 2025

Kerry Logistics Network has announced a special general meeting to discuss and approve revisions to the annual caps under the 2024 KLN Logistics Services Framework Agreement and the 2024 SF Logistics Services Framework Agreement. These revisions are aimed at enhancing the company’s operational capabilities and ensuring compliance with regulatory requirements, potentially impacting its market positioning and stakeholder relations.

Kerry Logistics Network Announces 2025 Annual General Meeting
Apr 28, 2025

Kerry Logistics Network has announced its upcoming annual general meeting scheduled for May 26, 2025, which will be held as a hybrid meeting in Hong Kong. The agenda includes receiving financial statements, declaring a final dividend, re-electing directors, and re-appointing PricewaterhouseCoopers as the auditor. Additionally, the meeting will consider resolutions for the issuance of additional shares and other securities, reflecting the company’s strategic focus on expanding its capital base.

KLN Logistics Group Limited Announces Name Change and Corporate Amendments
Apr 24, 2025

KLN Logistics Group Limited has officially changed its name from Kerry Logistics Network Limited following shareholder approval and regulatory confirmation. This change, effective from April 2025, will not impact the company’s operations or financial condition, and existing shares remain valid. Additionally, the company has adopted a new memorandum and amended its bye-laws, reflecting these changes in its corporate structure.

Kerry Logistics Network Revises Annual Caps Amid Growing Demand
Mar 28, 2025

Kerry Logistics Network has announced revisions to its annual caps for several framework agreements due to anticipated growth in demand. The company plans to adjust these caps for the years ending 2025, 2026, and 2027 to accommodate expected transaction amounts. This move is in compliance with Chapter 14A of the Listing Rules, which requires reporting, announcement, and shareholder approval for certain agreements. The revisions are significant as they reflect the company’s strategic positioning to handle increased operational demands and maintain compliance with regulatory requirements.

Kerry Logistics Network Announces Final Dividend for 2024
Mar 28, 2025

Kerry Logistics Network Limited has announced a final cash dividend of HKD 0.15 per share for the financial year ending December 31, 2024, with payment scheduled for June 10, 2025. This announcement reflects the company’s commitment to delivering shareholder value and may impact its financial positioning and stakeholder relations positively.

Kerry Logistics Network to Rebrand as KLN Logistics Group
Mar 28, 2025

Kerry Logistics Network Limited announced the successful passing of all resolutions at its Special General Meeting held on 28 March 2025. Notably, the company will change its name to KLN Logistics Group Limited, reflecting a strategic rebranding. This change, along with amendments to the company’s Memorandum and Bye-laws, was approved by a significant majority of shareholders, indicating strong support for the company’s future direction and operational adjustments.

Kerry Logistics Network Reports Strong Financial Growth in 2024
Mar 28, 2025

Kerry Logistics Network has announced its audited consolidated annual results for the year ending December 31, 2024. The company reported a 23% increase in revenue to HK$58,274 million and a 12% rise in core net profit to HK$1,357 million. Profit attributable to shareholders surged by 95% to HK$1,542 million. The Integrated Logistics (IL) business saw a slight decrease in segment profit, while the International Freight Forwarding (IFF) business experienced a significant growth of 39%. A proposed final dividend of 15 HK cents per share is expected to be paid in June 2025. These results highlight the company’s strong financial performance and its strategic positioning in the logistics industry.

Kerry Logistics Network Proposes Name Change and Corporate Amendments
Mar 4, 2025

Kerry Logistics Network Limited has announced a special general meeting to consider significant changes, including a proposed name change to KLN Logistics Group Limited and amendments to its Memorandum and Bye-laws. These changes, subject to approval, aim to streamline the company’s operations and align its corporate structure with strategic goals, potentially impacting its market positioning and stakeholder relations.

Kerry Logistics Network Proposes Rebranding to KLN Logistics Group
Mar 3, 2025

Kerry Logistics Network Limited is proposing to change its name to KLN Logistics Group Limited as part of a rebranding effort to establish a more unified corporate identity. The change, which requires shareholder and regulatory approval, is intended to strengthen the company’s brand and strategic positioning without impacting its operations or financial condition.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.